"The CCEA today approved the proposal on seeking the ex-post facto approval for subsidy payment of Rs 5,500 crore through a special banking arrangement (SBA)," a source said.
The Finance Ministry had earlier approved the proposal. The Fertiliser Ministry had arranged Rs 5,500 crore loan through banks at an interest rate of more than 10 per cent per annum against subsidy receivables.
Of the total interest, the government has agreed to bear around 8 per cent, while the rest to be borne by the industry, sources said.
The government had budgeted the fertiliser subsidy for current fiscal at Rs 65,971.50 crore, roughly around the same level of Rs 65,974 crore budgeted in 2012-13.
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